Crude oil pared more than one dollar in the electronic session today, giving up on profit selling as $100 per barrel acted as a very stiff resistance and a moderation in equities triggered a sell off. WTI futures clocked their four month highs of $99.69 per barrel and dropped as US dollar rose from its five session low following a less than impressive performance for the Italian debt. Italian five-year bond yields hit 6.29%- highest in around 14 years- according to media reports. Markets considered it a negative development given that Italy has taken steps to appoint a new leader and passed an austerity budget, easing fears that the country would be the next to be engulfed by Europe's debt turmoil. Italy's new government, led by economist Mario Monti, who is a former member of the European Commission, is expected to be able to implement austerity measures and economic reforms. Crude gained earlier in the day, extending its recent uptick as an upbeat undertone in Asian equities and strong economic growth data from Japan helped buoy sentiments. The Japanese economy grew an annualised 6.0% rate in the third quarter, rebounding from a slowdown caused by the devastating March 11 earthquake and tsunami, government data showed Monday. It was the first quarterly growth in four quarters. The rise in gross domestic product (GDP) was 1.5% from the previous quarter, the strongest since the January-March period in 2010. The latest sell-off is expected to continue in evening moves given that oil has been one of the best performing counter in asset markets. The WTI futures are currently down 91 cents at $98.08 per barrel. The MCX Crude oil futures for November are quoting at Rs. 4932, down Rs. 10 on the day. Prices could slide further if Rs. 4900 mark gives up.

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